Guide to claiming business deductions

Salary, wages and super

Salary and wages

If you operate your business as a company or trust, your company or trust can claim a deduction for any salary and wages it pays to you or any other employees.

If you operate your business as a partnership, you cannot claim a deduction for any salary or wages paid to a partner of the partnership.

If you operate your business as a sole trader, you cannot claim a deduction for salary and wages you pay to yourself. This means you cannot claim a deduction for any amount you take from your business income for private purposes. However, you can claim a deduction for salary and wages you pay to other employees.

If your income includes personal services income, the amount you can claim for payments you make to an associate may be limited.

For more information on limits to deductions for payments to associates under the personal services income rules, refer to Personal services income for sole traders.

Super

You can claim a deduction for super contributions you make to a complying super fund or retirement savings account for yourself (if you are self-employed) or for your employees.

The amount you can claim for making super contributions may be different if your income is personal services income.

For more information about super contributions, refer to Employers superannuation - home.

Claiming business deductions - home